A Virtual Trading Project for the Derivative Securities Course

Abstract

In this paper, I present a simulated trading project for the
undergraduate Derivative Securities course which allows
students to realistically trade both Futures and Option contracts.
The project makes use of the Virtual Trading tool provided on
the Chicago Board Options Exchange website, which processes
virtual trades in real time using actual market data.
Student response to the project's first implementation in Fall
2008 has been overwhelmingly positive. I provide Likert-style
survey results describing students' perceptions of various
aspects of the assignment, and identify directions for potential
future modifications.